Somewhere around half of Americans would not be able to scrape together $1,000 in an emergency. We’re not talking about accessing payday loans or credit cards. Anyone can get money through these routes and pay two, three, or four times as much for the $1,000 emergency in the long run. I’m talking about having the actual emergency savings on hand.
Are you one of those people who does not have the emergency savings for car repairs, an urgent care visit, or a replacement electric pressure cooker during canning season? If so, here are some tips to help you build up a thousand bucks in emergency savings:
- Create a Budget – Start with how much you make in a month. Then figure out how you are going to spend that money. Your priorities should be (in particular order) food, rent/mortgage, utilities, transportation, other bills, and then saving up for your $1,000 emergency fund.
- Find Extra Work – If you find your income isn’t covering your expenses, you may need to find extra side jobs. Consider driving for Uber, doing Airbnb, or delivering pizzas. For double the money, pick up Uber fares while delivering pizzas! Whatever you do, do not rack up more debt. It leaves you vulnerable.
- Educate Yourself – Though it is based on Christian principles, Dave Ramsey’s The Total Money Makeover is helpful for people of all persuasions. I’ve learned just about all of my personal finance advice from him, and I’m a lousy atheist!
This $1,000 buffer is key to your long-term financial success. I strongly recommend working on getting the cash in an easy-to-access savings account and forgetting about it until you have a real emergency.
What are your thoughts? Do you have $1,000 on hand? Can I have it? Comment below!
